Japan Reclassifies Cryptocurrency as Financial Instrument

Japan's lower house has passed a bill that reclassifies cryptocurrency as a financial instrument, subject to similar regulations as stocks and other securities. The bill now moves on to the upper house for approval.

The proposed legislation aims to regulate cryptocurrency trading and improve disclosure systems for information related to cryptocurrencies. If approved, the new law will take effect next year.

Under the new proposal, the tax rate on profits from cryptocurrency transactions could be reduced to 20% from the current up to 55%, aligning it with the tax rate for stock trading.